How We Invest Vol-VI
Amy Salzhauer of Good Growth Capital
Advice for Investors
Always keep going on the diligence.
One thing about investing early is to really think about the capacity of the current management team and, also, the capacity of that management team to transition to having a new team if it’s required.
There are some crazy valuations going on in the market. It’s important to think through pro formas and the actual allowable costs for starting a company that would enable you to have the kind of return that your investors expect.
Think through a disciplined process of discovery-driven planning. You need to think about what the revenues at the end will be and how that flows back through your financials to what the allowable costs are for the enterprise.
If you don’t impose discipline on thinking through the financials, then you are probably not going to be happy with the financials in the end.
What Good Growth is really looking for is fantastic technologies and they note that the team does not have to be fully in place for their Infinite Corridor fund to make an investment.